Performance of supervisory role
Subjects receiving special attention in 2007
Financial statements 2006 and Interim Report 2007
and the extent to which the Supervisory Board complied with its desired profile, its
composition and its required competencies. Where necessary, improvements in the Board's
effectiveness are made on the basis of this review. In particular, the Board is in need of
reinforcement in the areas of information technology and complex financial products.
The Audit Compliance Committee likewise reviewed its composition and effectiveness in
2007 and introduced some improvements in its working methods accordingly.
In 2007, The Supervisory Board again assessed the performance of the Executive Board and
its individual members. The Supervisory Board supervised the general conduct of affairs at
Rabobank Nederland and its affiliated entities. The Supervisory Board also regularly served
as a sounding board for the Executive Board. Regular subjects of discussion are the annual
and the interim figures, the strategy, the results, corporate social responsibility, ICT and the
risks associated with the Group's activities. The latter include the Executive Board's
assessment of the design and operation of the internal risk management and control
systems and any significant changes therein. Other subjects of discussion included the
compliance organisation's operation within Rabobank Group, potential acquisitions and
divestment proposals.
The Supervisory Board extensively discussed Rabobank Group's Financial statements for
2006, including the report of the Executive Board, the accompanying auditor's report,
the annual accounts and the proposed appropriation of available profit. In addition,
the management letter, including the management response, was discussed in detail and
in the presence of both the internal auditor and the external auditor. The Audit
Compliance Committee did intensive preparatory work to facilitate the review of the 2006
financial statements.
Further, the Supervisory Board extensively discussed Rabobank Group's Interim Report 2007.
Budget 2008
In accordance with the Articles of Association, the budget for 2008 was discussed and
approved by the Supervisory Board. Again, the Audit Compliance Committee provided
important input for this purpose.
Subprime crisis
The global situation following the subprime crisis received particularly special attention.
Following preparatory work by the Audit Compliance Committee, the Supervisory Board
closely monitored relevant developments by means of detailed information sessions with
the Executive Board and by exchanging views with the Executive Board on securing
Rabobank Group's position. In this context, it discussed Rabobank Group's indirect subprime
exposure, the potential consequences of a liquidity crisis and its possible effect on short
term and long-term funding, the effects on the profit and loss account, the operation of the
control and management mechanisms, concentration risk and systemic risk.
Local Rabobanks
The 'Rabobank 2010' Vision document was discussed extensively during Board meetings.
Rabobank 2010 is a project concerning the future structure of the local Rabobanks, which
aims to optimise the entrepreneurial character of the local Rabobanks, to align processes
with market needs and to reduce costs in view of Rabobank's competitive position. The CKV
agreed with the main terms of the Vision document in December 2007. An implementation
schedule is to be drawn up.
Strategy implementation
In 2007, the Supervisory Board discussed the progress of the Strategic Framework, which
included a review of the acquisitions made during the year. This Strategic Framework aims at
maintaining Rabobank's leadership in the domestic market and in strengthening its market
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Rabobank Group Annual Report 2007
